Computer Modelling Group ( Toronto - CMG ) -- Momentum Continues

Computer Modelling Group (CMG.to $17.75) reported excellent on target Q4 (March) results.  Non-GAAP earnings advanced 36% to $.19 a share.  Revenues improved 20% to $17.2 million.  All figures are in Canadian dollars.  Perpetual software license revenue declined 13% to $3.4 million.  That segment tends to bounce around from period to period.  Annual subscriptions generally are more consistent.  That segment was responsible for the quarter's growth.  The next generation DRMS software project experienced technical problems and probably won't be launched for another two years.  Computer Modelling is working with Shell and Petrobas on that effort.  Meantime, though, the company's core reservoir simulation line is continuing to build momentum.  Computer Modelling is the leader in the hard to recover end of the market, which is the industry's fastest growing area.  Fiscal 2012 (March) earnings rose 30% to $.65 a share.  Revenues improved 18% to $61.0 million.  Our fiscal 2013 estimates are unchanged at $.80 a share and $70 million, respectively.  The quarterly cash dividend was increased to $.16 a share.  An extra $.10 a share will be paid in June.

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